Adnoc Drilling Secures $314 Million in Contracts with Kuwait Oil Company for Offshore Operations

Adnoc Drilling has been awarded two contracts by the Kuwait Oil Company (KOC) valued at up to 96.5 million Kuwaiti dinars (approximately $314 million). These agreements mark Adnoc Drilling's significant entry into offshore Kuwait and will facilitate its first offshore rig operations outside the United Arab Emirates.

The contracts, approved by Kuwait Petroleum Corporation’s Higher Procurement Committee, have a firm term of four years, inclusive of mobilization, with an option for a one-year extension. The total value of $314 million does not encompass the optional extension period. Adnoc Drilling plans to deploy one of its own jack-up rigs and bareboat charter a second, with operations scheduled to commence in the fourth quarter of 2027.

Abdulla Al Messabi, chief executive of Adnoc Drilling, stated, “This award marks Adnoc Drilling’s entry into offshore Kuwait and an important step forward in our international growth journey.” The company is actively pursuing expansion into Middle Eastern markets, including Syria, and is exploring opportunities to enhance its gas drilling business.

In the past year, Adnoc Drilling has expanded its regional presence by acquiring an 80 percent stake in Oman’s MB Petroleum Services and a 70 percent stake in SLB's land drilling rigs business in Kuwait and Oman. With a current rig count of 170, including 140 rigs in Abu Dhabi, the company anticipates the Kuwait contracts to contribute financially starting in 2028.

These new agreements leverage Adnoc Drilling's expertise in complex offshore operations and align with its “Drill-to-Operate” strategy, which emphasizes strategic partnerships and new revenue streams for sustained growth. Meanwhile, Kuwait is seeking international oil company participation to develop its offshore discoveries, aiming to increase production capacity to four million barrels per day by 2035.

Adnoc Drilling recently reported a nine-month net profit of $1.07 billion, bolstered by record revenues. Chief Financial Officer Youssef Salem indicated that the company expects its unconventional drilling business to rebound and reach record levels next year, following a recent slowdown.